Hyundai, Kia to Offer Refunds For False Fuel Economy Claims

Korean automakers Hyundai and Kia overstated fuel economy numbers for approximately 900,000 vehicles built from 2010-2012, and will offer gas refunds to owners to compensate. In addition, fuel economy numbers will be lowered for approximately 35 percent of the combined Hyundai/Kia fleet, with some models losing a significant amount off their window-sticker claims.

Revised window stickers will be applied to new Kia and Hyundai vehicles in the coming days. Hyundai will retract advertising claiming it had four models getting 40 mpg or better; thanks to the downward revision, that claim is no longer true. The two Korean brands will offer customers of affected vehicles refunds based on the discrepancy and how much they drive. Dealers will check the odometer of affected vehicles, do the math, and then add 15 percent to the total; customers will get a debit card for the total amount. The card can be refilled for as long as the individual owns the car; prior owners will be reimbursed for the time they owned the vehicle.

Both Hyundai and Kia are owned by the same parent company and share manufacturing, engineering, and test facilities. According to a company statement, it is the test facility that is at fault. A discrepancy between how Hyundai/Kia and the EPA conduct a certain kind of fuel economy test called “coastdown” resulted in the higher fuel economy numbers. Thanks to the audit, the manufacturers say the testing methodology has been corrected.

Spokesmen for both companies expressed regret. “Given the importance of fuel efficiency to all of us, we’re extremely sorry about these errors,” said John Krafcik, president and CEO of Hyundai Motor America in a statement. “When we say to Hyundai owners, ‘We’ve got your back,’ that’s an assurance we don’t take lightly. We’re going to make this right for everyone, and we’ll be more driven than ever to ensure our vehicles deliver outstanding fuel economy.” Byung Mo Ahn, Kia’s group president and CEO of Kia Motors America and Kia Motors Manufacturing Georgia, also said in the statement: “As a customer-focused organization, we are fully committed to providing consumers with complete and accurate information, and deeply regret the errors were made. Our reimbursement program is intended to ensure that all affected Kia customers quickly receive fair compensation.”

If you own a Kia or Hyundai model listed below, and want more information, check out the program specifics at sites the companies have set up for Kia owners and Hyundai owners.

Source: EPA, Hyundai, Kia